The Federation Ministry of Energy, Mining, and Industry issued Adriatic Metals a new mining permit just 15 days after the Cantonal Court in Mostar annulled the previous one in late 2024, following a lawsuit by JP Vodokom from Kakanj.
The previous permit from the Federation Ministry of Energy, Mining, and Industry was revoked because the potential impact of Adriatic Metals’ mining operations in the hills near Vareš on the water source supplying Kakanj had not been assessed.
The newly issued permit indicates that “research and continuous monitoring” show no signs of contamination of the Bukovica River source, and JP Vodokom now has the option to appeal again.
The new director of Vodokom, Ishak Avdispahić, stated in an interview with a CIN journalist that they would not pursue legal action against the Ministry concerning this mining permit.
“I don’t see any grounds for us to sue the Federation Ministry again”, Avdispahić explained.
CIN has requested access to the new decision under the Freedom of Access to Information Act. However, the Ministry first sought approval from Adriatic Metals before responding.
Concession in the Water Protection Zone
In May 2021, Vodokom denied Adriatic Metals (formerly Eastern Mining) approval to build a mining facility. Despite this refusal, the Federation Ministry disregarded Vodokom’s decision and issued the company a permit for underground ore extraction two months later. As a result, Vodokom filed a lawsuit in August 2021.
After three and a half years later, the Cantonal Court in Mostar ruled that it was necessary to evaluate whether future mineral extraction and facility construction would adversely affect the Bukovica water source prior to issuing the contested decision.
Kakanj receives its water from the Bukovica River, which is supplied by streams from the Vareš municipality area.
The decision to protect the drinking water source for the city of Kakanj from the Bukovica River has been in effect for over a decade in the Zenica-Doboj Canton, strictly prohibiting the exploitation of mineral resources in the second water protection zone.
Given that the concession area of Adriatic Metals is located within both the second and third water protection zones, the Federation Ministry of Energy, Mining, and Industry was required to clarify the exact location of the mining site.
“It should be noted that the area where exploitation is approved is entirely outside both the second and third water protection zones”, states the new mining permit issued by the Federation Ministry of Energy, Mining, and Industry in January 2025.
The Ministry also pointed out in its decision that ore extraction was taking place in Vareš during the administrative dispute.
“More than two years have passed since the permit was issued, during which time exploitation has occurred, and continuous monitoring and impact assessments have been conducted… We can conclude that there have been no significant changes in the quantity or quality of underground and surface waters”, states the Federation Ministry’s decision.
Director Avdispahić, on the other hand, notes that Vodokom is working towards installing stationary sensors to continuously monitor water quality.
“I’ve looked into the costs, and they are incredibly high. I’m speaking from Vodokom’s perspective, which isn’t in the best financial situation”, said Avdispahić, emphasizing that this is the only reliable way to consistently monitor the safety of the water.
Hasty decision
In May 2021, the Kakanj public utility company Vodokom refused to grant Adriatic Metals (formerly Eastern Mining) approval for exploitation and the construction of a mining facility, citing the expert opinion of geological engineer Mirza Bašagić.
In July 2023, CIN journalists, referencing Bašagić’s findings, reported that the data in the study from the Mining Institute in Tuzla, which Adriatic Metals had submitted to Vodokom when requesting approval, was inaccurate.
The study states that the exploitation concession area does not fall within the Bukovica River catchment area, that the Rupica deposit is located downstream from the water intake, and that future exploitation will not impact the water intake.
“It is incomprehensible that a renowned institution like the Mining Institute in Tuzla would make such claims, especially when it is well-known and completely clear that the Bukovica water intake is located downstream and at a significantly lower altitude than the Rupica area”, Bašagić emphasized in his report at the time.
In July 2021, before granting Adriatic Metals permission to mine, the Federation Ministry of Energy, Mining, and Industry held an oral hearing with representatives from Adriatic Metals, Vodokom, the Municipality of Vareš, and others.
However, in the 2025 permit, the Ministry referenced the same public hearing, as no new one was organised. This time, they did not seek approval from Vodokom.
Meanwhile, the Sava River Basin Agency issued Adriatic Metals a new water permit for discharging technological wastewater and for activities that could have specific impacts on water during the extraction of complex lead, zinc, and barite ore at the Rupice site.
